A home warranty is not insurance. It’s a repair service policy on components in the home such as, air conditioner, heater and appliances. It’s purchased on a yearly basis and for a service fee the company will repair the component on a sliding scale based on age of the item and other factors.
Why do I want one? With the all expenses of getting into that new home like, down payment, inspections, closing costs and prepaid lender required items wouldn’t it be comforting to know that at least for the firs year a sudden failure of the AC or heating system wouldn’t be a blow to your stretched budget.
Enter the home warranty riding on its white horse to save the day. So when your agent suggests you purchase one yourself or ask your sellers to provide one, they have your best interest at heart.